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Liberal group's challenge to JobsOhio rejected by Ohio Supreme Court

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The Ohio Supreme Court on Tuesday upheld a lower court ruling that a progressive group and two Democrats lack standing to challenge the constitutionality of legislation that created JobsOhio.
( PD File)

COLUMBUS, Ohio -- Ohio's highest court on Tuesday rejected a challenge from a progressive group and two Democrats challenging the constitutionality of JobsOhio, the state's private, nonprofit economic development agency.

In a 5-2 decision, the Supreme Court held that ProgressOhio.org, state Sen. Michael Skindell of Lakewood and former state Rep. Dennis Murray do not have standing -- the legal right to pursue its claim in court -- to bring an action against the legislation that created JobsOhio. The court also held that the plaintiffs lack a personal stake in the outcome of the case.

"We have long held that a party wishing to sue must have a direct, personal stake in the outcome of his or her case; ideological opposition to a program or legislative enactment is not enough," Justice Judith L. French wrote for the majority. "Applying that precedent here, we conclude that appellants have failed to show that they have any personal stake in the outcome of this litigation."

The suit filed by ProgressOhio in 2011 contends that the law that set up JobsOhio and sends state liquor profits to the non-profit corporation violates the Ohio Constitution. But the case never went to trial. A lower court ruling dismissed the action saying ProgressOhio did not have standing.

ProgressOhio's executive director, Brian Rothenberg, said Tuesday's decision is the end of the road for this effort but does not answer questions about whether the effort is constitutional.

"The real question now is who defends the taxpayer and how can the taxpayer be defended," Rothenberg said in an interview Tuesday. "Who defends the jobless and demands accountability that government money lands in the hands of job creation and no in the hands of profiteers?"

John Minor, JobsOhio's president and chief investment officer, said the decision will allow "JobsOhio to remain focused on our core mission of creating jobs and enhancing economic opportunities for Ohioans."

"JobsOhio is working -- since its inception, we have helped generate $13.2 billion of capital investment and 230,624 new and retained jobs," Minor said in a statement. "We are proud of our accomplishments to date, and look forward to continuing our efforts to help Ohio grow and prosper."

"The purpose of a constitution is to protect the politically weak from the politically powerful," Thompson said then. "It appears as though no one has standing if the plaintiffs here don't have standing."

"Let's be clear -- these groups sought to preserve the failed government-centric status quo approach to economic development that contributed to the loss of 400,000 Ohio jobs over a four year period," spokesman Rob Nichols said in an emailed statement. "Ohioans deserve better. JobsOhio is working, the state is getting back on track, and we're happy that the Supreme Court is allowing our job creation efforts to continue."

In a dissenting opinion, Justice Paul E. Pfeifer wrote the plaintiffs had "public-right standing" and the Republican-dominated court has a responsibility to answer the questions posed by the plaintiffs.

"Today, this court ensures that no court will ever address the question of the constitutionality of the JobsOhio legislation," Pfeifer wrote. "Neither the state, nor its counsel, nor the majority opinion has been able to conjure a realistic example of a person or entity that would have the requisite standing and inclination to bring a claim. Ohioans will never know whether their government is violating the constitution. Apparently, they do not deserve to know."

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